Sources: Xbox Live to remove Gold requirement for Netflix, Hulu

Coming soon, according to internal Microsoft sources: two fewer white dots on this promotional card.

We can report that multiple sources within Microsoft have been briefed on plans to make a long-awaited change to the Xbox Live Gold paywall for streaming media services. According to our sources, Xbox 360 and Xbox One users will soon no longer need a paid subscription to Xbox Live Gold to access Netflix, Hulu, and other streaming media apps.

Additionally, we've been told that Xbox Live Gold may put other services behind the paywall to make up for this shift, though those sources could not confirm whether that includes existing services or if that only includes upcoming content like TV series from Xbox Entertainment Studios.

The information has come to light thanks to ongoing discussions about the company's announcements at June's E3 games expo. At this point, it's important to note nothing is official, and Microsoft may change its mind before the company's June 9 keynote. Either way, we've been told that the possible change in policy is directly linked to a changing of the Xbox guard after Don Mattrick left the company to become Zynga's CEO.

Microsoft's major console rivals, Nintendo and Sony, have never charged a monthly fee for access to streaming media apps on their systems. Popular media boxes like Roku, Apple TV, and Amazon Fire TV have also increased the pressure on Microsoft to follow suit.

We have reached out to Microsoft requesting official comment on the story and will update this post if there's a response.

119 Reader Comments

This has actually been something that was a deciding factor for me in XBox vs PS consideration. Good on them for removing the silly requirement that I pay them a subscription to access my other paid for subscriptions.

Although I own both consoles (also owned PS3 and Xbox 360), initially only had purchased the PS4 because of this reason. It's stupid to charge for a server that everyone of your number of competitors give for free. Ended up getting an Xbone because of a pricing error that I could not pass up but if it had not been for this, I would have stuck with just PS4.

This makes sense. For something like Xbox TV, etc. it makes sense to put it behind a paywall because they're funding the programming, providing advertising, etc.. It's no different than offering something like HBO in that case. For something like Netflix though it makes no sense. I've been a supporter of the Xbox brand but it's hard to justify putting streaming services I can stream for free (outside of their respective monthly charges) behind an artificial pay wall. Good for MS should this be true and I wonder what else they're doing to woo new customers. Seems E3 will be an interesting test on just how flexible MS is and how willing they are to actually compete on content and not just perceived value. Needless to say the new management at MS seem to be moving the company in the right direction.

I've disliked the paywall structure (just to acces other for fee apps) on XB Live and until recently I refused to get an account for just that reason.

I recently pnied up for a live account so I could play through Spartan Ops (Halo 4 additional content) and have hung onto it for access to free games down load and State of Decay access. My one year sub (and my sons) is up fairly soon and unless I see additional value I'll probably let it lapse.

This has actually been something that was a deciding factor for me in XBox vs PS consideration. Good on them for removing the silly requirement that I pay them a subscription to access my other paid for subscriptions.

Same here... while I'm likely to buy one of the two consoles sometime in the next year, odds are looking good for the PS4 over the X1, due to the Gold requirement. As it is, I hardly ever even use my 360 any more, and I haven't played a game online in at least a year; I wouldn't even have a Gold account right now if it weren't for the auto-renew (which I didn't know about and didn't want... but it's too late now.)

I have a PS3 and use it more for watching content via Amazon and Netflix than I do for gaming. I did not even know about the Gold requirement for Xbox and if I had I definitely would have stayed away (I got the PS3 because it had Blu-ray and the Xbox didn't).

Since both PS4 and Xbox One have Blu-ray and I was considering the two I would not even bother to consider the Xbox One if it still has the gold requirement.

This is something that pushed me away from Xbox as a media center years ago. Why did it take so long? Is it not too late for Microsoft?

Problem is that Sony does shitty things as well. Does the Xbox one have cinavia?

Yes it does because Cinevia is now a requirement for anything that can play BluRay movies. Approx since end of 2012 beginning of 2013 you can't buy any BluRay Player that doesn't have Cinevia built in.

The whole notion of Netflix and Hulu behind a paywall baffled me. Especially when the Box was touted as being part of the home entertainment system all-the-while the Playstation 4 kept the programs in front of the paywall. This is a good change but I do wonder if in the greater scheme of things if it will make much of a difference. Had this been the case pre-launch, it might have made the system seem a bit more appealing but now, I am unsure.

Will have to see how things change since Microsoft has been playing catch up to the Playstation 4. What this does illustrate well is how competition can lead to benefits for the consumer. Had there been no Playstation 4, how much of what Microsoft has changed would still be in the same?

This is something that pushed me away from Xbox as a media center years ago.

Yeah I bet it was a factor to a lot of more mature buyers who are not heavily into games and don't need a Xbox Live Gold subscription. Even a huge MS fan like me couldn't defend that move.

They also needs to remove the Gold requirement for ESPN and a few other non-gaming contents. IIRC, you can't even use IE and Youtube without the Gold subscription. Dumb move by MS. First thing casual buyers do when they see such restriction is to do the math: "let see..To use this box fully I need to get this Gold thing and it costs about $50 a year. So this xbox really costs $400+50*N. Wow..this is a really expensive box!"

A long time coming. When they were the only game in town re: solid, hosted online consoles, it made sense. In some sense, this is a relic left over from the original XBox, even though it didn't necessarily have Netflix. However, with the rise of HTPCs and streaming boxes, and that the PS ecosystem does this for free, the Gold requirement for Netflix et al. just seemed like a lock-in fee. Now that people are basing their purchasing decisions partially on streaming media, it makes sense to change the policy.

Live is estimated to generate around 850 million in revenue annually. Removing the fee for those who just want a Roku seems like it would backfire, at least where the bottom line is concerned.

It might. But it also might sway a few more people toward a X360/X1 who might otherwise have balked at being forced to pay for Live in order to be able to watch Netflix and Hulu that they already pay for, and instead turn to PS3/PS4/PC for their gaming. Regardless of whether they might see the benefit of a Live subscription at a later date, the initial reaction (I know mine was) is "wtf?!"

Live is estimated to generate around 850 million in revenue annually. Removing the fee for those who just want a Roku seems like it would backfire, at least where the bottom line is concerned.

It might. But it also might sway a few more people toward a X360/X1 who might otherwise have balked at being forced to pay for Live in order to be able to watch Netflix and Hulu that they already pay for, and instead turn to PS3/PS4/PC for their gaming. Regardless of whether they might see the benefit of a Live subscription at a later date, the initial reaction (I know mine was) is "wtf?!"

I guess there are people who would buy an Xbox and just play single player games. I wonder what the percentage is? I don't see people buying an Xbox One or PS4 just for media streaming, that's just nuts when you can get a Roku or Fire TV cheaper. For the people who just play single player games and want to watch Netflix, I guess its good news.

This is why I think Microsoft should have come up with an Xbox streaming machine to take on Roku and such. Then they can have Xbox video and music so people can rent movies and listen to music, that's how they can make they're money after the initial sale of the unit.

Speaking of Xbox video and radio. I would think that they would remove that from gold too (since music has a sub fee) but people might be more likely to pay for movies and shows on the Xbox if they didn't wasn't behind the Gold membership.

I can't imagine Netflix playback being a sticking point when, like, every other consumer device has it. I have four items in my entertainment center now that play Netflix.

But people be wierd.

Still, good move.

The Xbox One is being pushed hard by Microsoft as the One (get it) device that you need for all your media playback. Having most of your media options behind the paywall just makes other devices like the PS4 or the Roku more attractive. Microsoft wants your entertainment center to be an Xbox One, a TV and your audio equipment, no Roku's and its like.

I would be very curious to see if this impacts their subscriber numbers much. I can't believe it would make a big difference.

Yep, in my opinion, it's not going to change much.

Coming out with a less powerful console with a bundled camera that nobody seems to want and charge $100 more is what doomed the Xbox One. I really doubt consumers knew that Netflix and Hulu Plus streaming required an Xbox Live subscription before they bought.

I've got to say that Sony has done a really crappy job of informing consumers that Netflix and Hulu Plus streaming requires an extra subscription on the Xbox.

Most people IMHO, buy the Xbox not realizing the subscription requirement, and then are stuck with the hardware since they can't return their opened games. (The hardcore gamers don't care because they'll be subscribing to Xbox Live since they NEED it to access online gaming.)

My solution when I discovered the paywall? "That sucks", never subscribed, barely use the thing.

Microsoft could have had two years of me using their product, reminding me of all the new games and services they sell as I boot up to get to Netflix. Instead it gathers dust, and I bought a smart TV with Netflix built in, and a Fire TV (for the older TV).

Microsoft should do this as part of their effort to improve the perception of Xbox.

The Xbox One isn't an option to me unless this change is made. Of course a price drop is also necessary, but the XBO becomes significantly more appealing to me if Microsoft makes the right adjustments.

Internet Explorer also requires XBLG. So it can't be limited to just media apps. It's gotta be a broader change.

Any service provided by Microsoft or that is paid for with your XBLG subscription can be behind the paywall. Everything else should be freely available.

About time. I found myself watching netflix more than playing games over the past two years so naturally I used the ps3 more over time. This led to me easily choosing the ps4 over the xbox one when it came time to upgrade. I'm surprised to hear they are only now doing this. A subscription so I can use a subscription seems so backward.